Yunfeng Financial Group Limited 雲鋒金融集團有限公司

CFA allows SFC's appeal against MMT decision on insider dealing in Asia Telemedia Ltd
SFC, 12-Oct-2018
By a 4:1 majority, the Court of Final Appeal overturns the Court of Appeal's ruling which upheld the MMT decision. That's a victory for common sense - the defence that the insiders were selling to take advantage of a bubble holds no water when, if the company's financial difficulties had been known, its stock price would have been lower. By that test, they were "using" the Inside Information.

Cout of Appeal dismisses SFC's appeal against MMT decision
SFC, 28-Apr-2017
It's the SFC's 2nd loss in a month, following the CITIC case at the MMT. The MMT cases involved the same judge. The appeal centres on the meaning of "using" inside information, and whether withholding of the information was a "use" which had contributed to the artificially high price. In our view, that misses the point. It should have been enough to show, as the SFC did, that the respondents knew that the market price would likely be materially lower if the information in their possession had been disclosed. On a common sense analysis, that should constitute "using" the information when dealing. Let's hope the SFC takes this point of law to the CFA.

MMT clears 3 in Asia TeleMedia case
SFC, 26-Nov-2015
The firm is now Reorient Group Ltd (0376). The MMT makes no finding on Lu Ruifeng, who was hospitalised outside the jurisdiction. It finds that 2 of the defendants knew negative price-sensitive information but that this was not a factor when they sold their shares during the 2007 market bubble. Comment: if the same events were to happen today, then the board would have a statutory obligation to disclose the inside information.